When your advisor changes jobs or firm affiliations, the ripple effects can reach your investments, account servicing, and communication. Use this guide to understand why firm moves matter and learn the essential steps to safeguard your finances.
Advisors change firms for various reasons, such as better compensation, more resources, philosophical differences with management, or access to different investment products.
A firm change affects more than just your advisor's business card. Different firms have:
Different fee structures and compensation models
Access to different investment products and platforms
Varying levels of resources and support
Different compliance standards and oversight
Proprietary products that may or may not be available elsewhere
If you follow your advisor to their new firm, you may face account transfer fees, lose access to certain investments, or encounter tax implications. Some products like proprietary mutual funds or private equity offerings are only available at specific firms.
1. Contact Your Advisor Directly
Reach out to your advisor as soon as you receive the notification. Ask them:
Why did they decide to change firms?
What benefits does the new firm offer to them and their clients?
Will their investment philosophy or approach change?
What support will you receive during any transition?
2. Understand Your Options
You have three primary choices when your advisor changes firms:
Follow your advisor to the new firm - This maintains your existing relationship but may involve account transfers and paperwork.
Stay with the current firm - You'll be assigned a new advisor, but your accounts remain where they are.
Explore other alternatives - Use this as an opportunity to interview other advisors or firms leveraging AdvisorCheck’s Search tool.
3. Review the Practical Implications
If you're considering following your advisor, understand the logistics:
What account transfer forms will you need to complete?
Are there account closure fees or transfer restrictions?
How long will the transfer process take (typically a few days to a few weeks)?
Will you need to liquidate any positions that aren't transferable?
Are there tax implications for transferring tax-advantaged accounts like IRAs?
What are the fees at the new firm compared to your current firm?
4. Evaluate the New Firm
Research the advisor's new firm just as carefully as you would research a new advisor by tracking its stability through AdvisorCheck’s Firm Stability Insights:
Monitor regulatory history, disclosure events, and leadership changes for signs of risk.
Review advisor headcount, client retention, and assets under management to spot changes and patterns.
Confirm the client-to-advisor ratio and average account values align with your service needs.
Receive biweekly alerts so you’re always up-to-date - Start Tracking Now.
5. Consider Staying Put
If you're satisfied with your current firm, you don't have to follow your advisor. Your firm will likely assign you to another advisor. Before you meet, use our search tool to find and start monitoring your new advisor so you can get up to speed with their background before moving forward.
6. Make an Informed Decision
Take time to evaluate your options. This isn't a decision you need to rush. Consider:
The strength of your relationship with your current advisor
Whether the new firm aligns with your values and needs
The costs and hassle of transferring versus staying
Your overall satisfaction with the service you've received
If you have questions or feel uncertain, reach out to us anytime at support@advisorcheck.com.
